A client has provided a client representation letter to the auditor, but the auditor is not able to support a management representation that is material to the financial statements. This will normally require the auditor to: A) issue an unqualified opinion with an explanatory paragraph. B) issue a qualified opinion or a disclaimer of opinion. C) issue a qualified or adverse opinion. D) issue a standard three-paragraph unqualified opinion. E) withdraw from the engagement.

Question

Quizplus · Accepted Answer

When an auditor cannot support a management representation that is material to the financial statements, it indicates a limitation on the scope of the audit or a possible misstatement in the financial statements. This situation typically leads to the issuance of a qualified opinion or a disclaimer of opinion, depending on the auditor's ability to obtain sufficient appropriate audit evidence and the pervasiveness of the issue.

A Client Has Provided a client Representation Letter to the Auditor